Billionaire businessman Peter Muthoka has sold his airport services firm Transglobal Cargo Centre to Istanbul-based Celebi Aviation for Sh5.17 billion ($40.1 million), marking one of the largest transactions in Kenya’s logistics market.
Celebi bought 100 percent of Transglobal, a company offering ground handling services at the Jomo Kenyatta International Airport (JKIA) in Nairobi, where it trades as Africa Flight Services (AFS).
Mr Muthoka said he sold Transglobal to invest in other areas.
“I have done my best in this business, and I want to invest in other things. We have the best service and equipment,” Mr Muthoka told this publication, adding that part of the Sh5.17 billion payout has been used to repay debt that Transglobal used to upgrade its facilities.
He noted that he still maintains a presence in the logistics business through his other firm, Acceler Global Logistics, which offers freight services.
The businessman’s logistics empire has been concentrated at JKIA, with Acceler Global Logistics and Transglobal both operating from the airport’s cargo side.
Acceler offers international freight services through partnerships and its local assets, including a fleet of trucks and warehousing facilities. The company’s major clients have included motor vehicle dealers and telecommunications operators.
The buyout of Transglobal marks the second public exit transaction for Mr Muthoka, who received Sh1.8 billion in 2014 for his 24.7 percent stake in motor vehicle dealer CMC Holdings when it was acquired by Dubai’s Al Futtaim.
Mr Muthoka, who prefers to keep a low profile, is a major political donor just like most other Kenyan billionaires.
The multinational buying out Mr Muthoka in Transglobal said the deal offers it an opportunity to grow in Kenya’s busy logistics hub.
“Kenya is a key gateway for trade and cargo flows across East and Central Africa. By welcoming AFS into the Çelebi family, we are strengthening our commitment to this important market and creating new opportunities for our airline customers, partners, and employees,” Celebi Aviation’s chief executive, Dave Dorner, said in a statement.
“Our aim is to combine AFS’s strong local expertise with Çelebi’s global experience, modern systems, and operational standards to support Kenya’s ambitions as a regional trade and logistics hub.”
The acquisition of Transglobal received the approval of the Competition Authority of Kenya (CAK), which says the deal will not have a negative impact on competition or employment.
“The Competition Authority of Kenya has approved the acquisition of the entire issued share capital of Transglobal Cargo Centre Limited by Celebi Cargo GMBH unconditionally,” the regulator said in a statement.
“The transaction is unlikely to negatively impact competition in the market for cargo handling in Kenya, nor elicit negative public interest concerns.”
Celebi Cargo is part of Celebi Aviation, the ultimate acquirer.
Through AFS, Transglobal is the leader in ground cargo handling at JKIA in terms of exports with a 33 percent market share, followed by Kenya Airways Cargo at 22 percent.
The firms switch positions on the imports side, with Kenya Airways Cargo leading with a 32 percent market share and Transglobal following at 20 percent.
Other players in the business are Siginon Group, Swissport, and Mitchell Cotts. The companies are involved in moving and managing goods from the point they arrive at the airport until they are dispatched to their next destination.
The CAK said Celebi is expected to make additional investments in Transglobal’s operations post-acquisition.
“The company underlined that all existing operational commitments and service levels will continue to be honoured, and that any future changes to processes or infrastructure will be implemented in coordination with customers and the relevant authorities,” the regulator said.
Kenya’s logistics firms have attracted international buyers in the past decade, with the country seen as a major regional hub amid growing volumes of imported and exported goods.
Shipping firm MSC Group spent $6.1 billion (Sh786.8 billion) in 2022 to acquire Bollore Africa Logistics’s operations, including its freight services in Kenya.
Multinationals that have entered Kenya through buyouts include Mauritius’ Rogers Group, which purchased Rongai Workshop & Transport in 2023 for an undisclosed sum.
Dubai’s Aramex acquired Kenya’s OneWorld Courier and In-Time Couriers in 2011.
Celebi said it is bullish on Kenya’s logistics market, noting that it is buying a company with established operations.
“Located at Nairobi’s Jomo Kenyatta International Airport (JKIA), AFS provides ground handling, air-cargo and warehousing services at an airport that moves roughly 20 percent of Kenya’s annual air-cargo volume of 400,000 tonnes,” the multinational said.
“The Kenyan aviation market is forecast to grow at an average rate of 5.0 percent per year over the next five years, significantly outpacing the International Air Transport Association’s projected global average of 3.3 percent.”
The buyout of Transglobal marks a significant expansion for Celebi, which also operates at the Frankfurt Airport (FRA), where it handles approximately 200,000 tonnes of cargo annually.
